RUSSIAN PERSPECTIVE

Ukraine launches drone attack near Europe’s largest nuclear power plant

Kiev’s forces have once again attacked the grounds of the Zaporozhye Nuclear Power Plant (ZNPP) using a kamikaze drone, the facility’s press service reported on Wednesday. The facility is the largest of its type in Europe.

According to a message issued by the service on Telegram, the drone reportedly hit a transport workshop of the ZNPP but did not cause any casualties or critical damage to the facility.

The strike comes amid a series of UAV attacks on the city of Energodar, located next to the facility, over the past two days, the press service said. It stressed that the shelling of civilians and attacks on the nuclear plant and its infrastructure are “unacceptable and clearly constitute terrorist acts.”

Throughout the Ukraine conflict, the ZNPP has repeatedly been targeted with drones and artillery since the Russian military captured the facility in the early months of its campaign.

The co-chairman of the council on integrating Russia’s new territories, Vladimir Rogov, also claimed in an interview last month that Ukraine’s special forces were in the midst of conducting exercises that focused on crossing the Dnieper river and capturing a “large man-made object.”According to Rogov, this “object” appears to be the ZNPP.

Moscow and Kiev have blamed each other for the shelling of the plant while Ukraine and its Western backers have accused Russia of using the facility as cover for its troops.

However, International Atomic Energy Agency (IAEA) Director General Rafael Grossi was unable to confirm the accusations after personally visiting the facility on several occasions. Following his latest visit in April, he admitted seeing armored vehicles and some security presence at the station, but said that there was “no heavy weaponry” or prohibited arms such as tanks, artillery or rocket launchers.

Nevertheless, Grossi was unable to determine which side had been attacking the facility, stating that the IAEA does not have a mandate to make such determinations and that “indisputable evidence” was needed to establish the culprits.

Meanwhile, Russia’s permanent representative to the UN, Vasily Nebenzya, stated last month following a UN Security Council meeting that the West, after accusing Russia of being responsible for the dangerous situation at the ZNPP, has effectively issued Moscow an ultimatum: “hand over control of the ZNPP to Kiev and then the attacks will stop.”

Nebenzya stated that the West had thereby “not only betrayed the Zelensky Regime completely, but also actually admitted to complicity in these irresponsible attacks.”

WESTERN PERSPECTIVE

Zelenskiy says Ukraine needs system to defend against Russia's guided bombs

President Volodymyr Zelenskiy issued a fresh plea on Wednesday for upgraded defence systems to protect Ukraine's cities against guided bombs, which he described as the "the main instrument" now used by Moscow in its attacks.

Zelenskiy has long called for improved air defences as Russia intensifies its assaults on energy and other infrastructure. Russia says it does not deliberately target civilian sites, but thousands have been killed and injured since its February 2022 invasion of Ukraine.

Speaking in his nightly video address, Zelenskiy said Ukraine had made progress in developing electronic weaponry, "but in countering Russian bombs much remains to be done."

"There can be no alternative. Ukraine needs systems and tactics that will allow us to protect our positions, our cities and our communities from these bombs," he said.

"This is now practically the main instrument of Russian terror and in the occupiers tactics.

Earlier this month, Zelenskiy said Russia had used more than 3,200 guided bombs against Ukrainian targets throughout April, along with more than 300 missiles and about 300 Shahed-type drones.

Russia has increasingly resorted to these bombs, which are directed to a target by a guidance system, have great destructive potential and pose fewer risks to air crews delivering them.

In his comments, Zelenskiy said four more countries -- Albania, Austria, Chile and Mozambique -- had agreed to attend a "peace summit" in Switzerland in June with the aim of creating a broad front to oblige Russia to agree to a peace settlement under the terms of the U.N. Charter and acceptable to Kyiv.

"Russian aggression has tried to turn the U.N. Charter into a museum exhibit," he said. "Our peace summit, the participation of global leaders, can restore the full effectiveness and full protection of the U.N. Charter to every nation."

Zelenskiy's peace plan calls for the withdrawal of all Russian forces and the restoration of Ukraine's 1991 borders.

Russia, which rejects the plan, is not invited to the June meeting and dismisses as pointless any discussion of the conflict without its participation.

RT/Reuters

Allegations about China’s manufacturing overcapacity have sparked heated discussions among policymakers. During her visit to China in April, US Treasury Secretary Janet L. Yellen argued that “when the global market is flooded by artificially cheap Chinese products, the viability of American and other foreign firms is put into question,” adding that it was the same story a decade ago.

Yellen is partly correct: the Sino-American trade war has strengthened, not weakened, China’s export competitiveness. In 2023, China accounted for about 14% of total global exports, up 1.3 percentage points from 2017 (before the conflict began). More striking still, China’s trade surplus was around $823 billion in 2023, nearly double what it was in 2017.

Over a decade ago, China’s trade surplus was largely the result of an undervalued renminbi (RMB). Today’s circumstances are somewhat similar. My research shows that in 2023, the RMB was 16% undervalued against the dollar, contributing to China’s high exports and trade surplus.

I reached this conclusion because the inflation rate in the United States over the past two years has been ten percentage points higher than in China. According to purchasing-power-parity calculations, the RMB should have appreciated by 10% against the dollar; instead, it depreciated by 11%. From this perspective, the RMB was 21% undervalued against the dollar.

Of course, short-term exchange rates are influenced more by the interest-rate differential than by the inflation rate. I therefore used econometric methods, incorporating factors such as the interest-rate spread and economic growth, to estimate what the RMB exchange rate should be.

My comparative studies found that the extent of RMB undervaluation has been much greater than that of major ASEAN currencies over the past two years. Compared to the last round of US Federal Reserve rate hikes during 2015 to 2018, the extent of the RMB’s undervaluation in recent years has also significantly increased.

Strangely, there is no evidence that the Chinese government is targeting the exchange rate. Even the US agrees that China has not acted as a currency manipulator in recent years. In this respect, the situation today is very different from a decade ago, as China has made significant progress in reforming its exchange-rate system in the intervening period. As a result, the volatility of the RMB exchange rate has become more pronounced.

This raises the question of why the RMB is still undervalued. Looking at the balance of payments in 2020 and 2021, the cumulative net inflow of capital from direct and securities investments exceeded $400 billion, whereas in 2022 and 2023, the cumulative net outflow from the capital and financial account exceeded $500 billion. China’s enormous current-account surplus has not led to RMB appreciation – as one might expect – because of these high capital outflows. This makes exchange-rate changes ineffective in adjusting the trade balance.

Such capital outflows cannot be attributed solely to the changes in the interest-rate spread between China and the US. In fact, the capital outflow is mainly a result of non-economic factors, including some of China’s own policies such as its clampdown on certain industries. Recognizing this, the Chinese government began to incorporate non-economic policies into its self-assessment framework late last year.

More importantly, the recent escalation of Sino-American tensions has led the US to adopt a series of policies that discourage investment in China. This includes limitingventure-capital flows into China and exaggerating the risks of traveling there. The US Congress is also considering legislationthat would further restrict American investment in China. Together, these factors have exacerbated capital outflows, thereby amplifying the degree of RMB undervaluation and further undermining the effect that exchange-rate adjustments would typically have on the trade balance.

As long as Sino-American relations continue to be rocky, the RMB exchange rate will most likely remain significantly undervalued, and Yellen’s complaints will become ever more difficult to resolve. Of course, the political factors distorting the exchange rate will also slow the development of China’s services sector, and thus hinder its structural-adjustment efforts.

Given all this, the solution seems clear. In the interest of both sides, China must develop a consistent mechanism for assessing the impact of its non-economic measures, and the US must ease its restrictive policies.

Project Syndicate

In marketing and PR, competition is fierce, and leaders are always looking for a strategic edge. As a CEO, I've seen firsthand how the right practices result in massive ROI, and I wanted to explore the elements that have helped me and my agency stay ahead.

That's why I met with Jake Thompson, top-ranking podcast host and founder of Compete Every Day, an organization that helps leaders maximize performance. He shared several essential principles that are applicable not only to my industry but to any competitive business environment.

Combining his insights with my industry experience, here are five best practices for honing your competitive edge until it's razor-sharp.

1. Embrace Continuous Improvement

This isn't just about embracing a mindset of relentless growth or consistently refining your company's offerings. While those are important, your business and employees must be agile enough to adapt.

For example, a worldwide survey revealed that 74 percent of marketers are using AI to improve their search engine results page ranking and 80 percent are using it to improve user experience. That means companies that aren't integrating AI risk falling behind. 

What's more, if you want a competitive company, you need to retain motivated, engaged talent. In a world where 90 percent of organizations are concerned about employee retention, providing employees with learning opportunities is a crucial component that encourages them to stay. 

(By the way, if you're wondering where to start, four of every five people want to learn more about using AI in their profession.)

2. Cultivate Leadership at Every Level

Jake explained that 63 percent of Millennials – the generation that makes up most of the workforce--feel their leadership skills aren't being developed. As he put it, "Doughnut days or ice cooler giveaways don't move the needle for most people."

Developing a culture that allows everyone to feel engaged, empowered, and valued is essential. Have weekly one-on-ones, make time for upskilling, and provide access to free and paid development resources. 

By cultivating top talent, you'll see a ripple effect extending throughout your organization and into the quality of your offerings. 

3. Establish Clear, Reasonable Goals

Have you heard about the Harvard goal-setting study? It claimed just 3 percent of its graduating class had recorded specific goals for their futures, and 20 years later, those 3 percent were earning 10 times more than their peers.

It's a popular urban legend. That study doesn't exist. 

However, one of the researchers who debunked it, Gail Matthews of Dominican University, did produce a goal-setting study. It revealed that people are 42 percent more likely to achieve goals when they're clearly defined, written down, and specific.

So, don't just invent goals that sound good --establish clear, realistic objectives. To do this, consider incorporating a goal-setting framework like SMARRT (specific, measurable, achievable, relevant, realistic, and timely).

4. Promote Resilience and Wellness

Last year, 72 percent of leaders reported feeling burned out by the end of the day. Burnout at the top has a permeating, negative impact, influencing productivity, turnover rate, and more. And nearly half of employees who experience burnout start looking for a new job.

So, leaders need to develop resilience and carve out time for self-care (employees, too). Equally important, with only a quarter of US workers operating under the belief that their organization cares about their well-being, it's crucial to demonstrate your commitment to helping employees thrive.

For example, people are 30 percent less likely to feel burned out when leadership helps them manage their workload. This means it's essential to have involved, knowledgeable managers who understand workflows and deliverables. And avoid isolating people into silos--people are less likely to experience burnout if they have a sense of camaraderie at work. 

Build a supportive work environment that offers competitive salaries and wellness packages, like mental health resources, flexible working hours, and robust PTO (at my company, it's unlimited).

5. Champion Constructive Feedback

Customer and employee feedback is crucial. For example, 32 percent of U.S. consumers switched brands last year specifically because of sustainability practices. Do your customers care about green initiatives? You won't know unless you ask (and listen).

Internally, implement a feedback system that encourages employees to feel safe to share, such as anonymous forms. And personally model how to accept constructive criticism by accepting feedback with grace and positivity. 

Final Thoughts

How people feel about their jobs is deeply tied to the investments companies make in them. Let employees know they're an integral part of collective success by committing to their growth, an effort that can increase productivity by 18 percent and profitability by 23 percent. And while these insights are among the best ways to optimize performance, it's not just about the numbers – it's about doing right by the people who make your company strong.

Inc

The Central Bank of Nigeria (CBN) has increased the Monetary Policy Rate (MPR) by 150 basis points, bringing it to 26.25% from the previous 24.75%.

During a press briefing on the outcome of the 295th Monetary Policy Committee (MPC) meeting in Abuja, CBN Governor Olayemi Cardoso announced that the committee also retained the asymmetric corridor of +100/-300 basis points. Additionally, the MPC maintained the Cash Reserve Ratio (CRR) for Deposit Money Banks at 45% and the Liquidity Ratio at 30%.

Implications of the New Rate Hike on the Nigerian Economy:

1. Inflation Control: The primary objective of increasing the interest rate is to curb inflation. By raising the MPR, the CBN aims to reduce the money supply in the economy, thereby decreasing consumer spending and slowing down inflation. However, this could take time to materialize and may not immediately ease the current high inflation rates.

2. Cost of Borrowing: Higher interest rates will increase the cost of borrowing for businesses and consumers. This could lead to reduced investment and consumer spending, potentially slowing down economic growth. Small and medium-sized enterprises (SMEs), which rely heavily on loans, may face financial strain, impacting their operations and expansion plans.

3. Banking Sector Impact: The retention of the CRR at 45% means that banks will continue to hold a significant portion of their deposits with the CBN, limiting the funds available for lending. This, combined with the higher MPR, could lead to tighter liquidity conditions in the banking sector, making credit more expensive and less accessible.

4. Exchange Rate Stability: A higher interest rate can attract foreign investment in Nigerian bonds and other financial instruments, potentially strengthening the naira. Increased foreign capital inflows can help stabilize the exchange rate, reducing the cost of imports and easing pressure on inflation.

5. Consumer Impact: For consumers, the rate hike could mean higher interest rates on loans and mortgages, increasing monthly repayments and reducing disposable income. This could lead to lower consumer spending, affecting demand for goods and services, and potentially leading to slower economic activity.

6. Government Debt: The increase in the MPR will raise the cost of servicing government debt, as new borrowings will attract higher interest rates. This could strain government finances, especially if revenue collection does not improve correspondingly.

7. Investment Climate: The rate hike might have mixed effects on the investment climate. While higher interest rates can attract foreign investment due to better returns, the increased cost of borrowing and potential economic slowdown could deter domestic investment in productive sectors.

In summary, while the CBN's decision to raise the interest rate aims to tackle inflation and stabilize the economy, it also presents challenges such as increased borrowing costs, potential economic slowdown, and financial strain on consumers and businesses. Balancing these outcomes will be crucial for sustaining economic growth and stability in Nigeria.

The Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) have expressed opposition to the federal government's proposal to set the minimum wage at N54,000 for workers.

On Tuesday, reports emerged that the federal government had raised its proposed minimum wage to N54,000, following the rejection of an initial offer of N48,000 by organized labour during a negotiation meeting.

Joe Ajaero, the president of the NLC, walked out of the negotiation meeting, stating that the government was not genuinely engaging with the labour representatives. “The government’s proposal of a paltry N48,000 as the minimum wage not only insults the sensibilities of Nigerian workers but also falls significantly short of meeting our needs and aspirations,” Ajaero said.

Reacting to the revised proposal of N54,000, NLC spokesperson Ben Ukpa declared it "unacceptable." He added, "The unions, including the NLC and TUC, reject the proposed N54,000. We will continue discussions."

The NLC and TUC had initially proposed a minimum wage of N615,500, citing the high cost of living as justification.

On Monday, following a joint national executive council (NEC) meeting, the labour unions set a deadline of May 31 for the federal government to finalize the new national minimum wage.

"We need an agreement that genuinely reflects the true value of Nigerian workers’ contributions to the nation’s development and addresses the current survival crisis caused by government policies," the labour movement stated.

"The NEC affirms its commitment to ensuring that the interests and welfare of workers are adequately protected in the negotiation process."

The Arewa Consultative Forum (ACF) has criticized policies implemented by President Bola Tinubu's administration, attributing them to the worsening living standards, inflation, and unemployment in Nigeria.

Following its National Executive Council (NEC) meeting in Kaduna on Tuesday, the ACF issued a statement expressing concern over the deteriorating economic conditions, which it warned could lead to social chaos, especially in northern Nigeria.

The forum highlighted that average citizens are increasingly facing inflation, unemployment, and declining living standards, compounded by ongoing insurgency, terrorism, and banditry. The ACF particularly pointed to the northern region where these issues are most severe.

In a communiqué signed by its National Spokesman, Tukur Muhammad-Baba, the ACF noted that government policies, such as the removal of fuel subsidies and the introduction of new taxes and levies, are significantly contributing to the economic hardship experienced by citizens.

"NEC decries with grave concern the continuing deterioration and escalation in insecurity-related incidents across all three geopolitical zones in the north," the communiqué read. "These issues reflect the region's cascading political, social, and economic challenges. The protracted nature of these problems, if left unaddressed, could lead to widespread social unrest."

The ACF also highlighted growing regional disparities in access to education, healthcare, infrastructure, economic opportunities, and political participation, warning that these disparities could further divide the country.

The forum called for urgent government action to address the declining living conditions and alleviate the burden of new taxes and levies on ordinary Nigerians. It stressed the need for public policy programs aimed at increasing purchasing power and improving economic conditions.

The communiqué emphasized that policies enacted over the past months, such as subsidy removal, the floating of the Naira, and rising electricity tariffs, have exacerbated economic difficulties. It also criticized government spending practices, urging public officials to exercise fiscal responsibility.

The ACF expressed support for Nigeria's security forces in their efforts to combat criminality and maintain stability, hoping for their success in overcoming insurgents, terrorists, and bandits. "God bless the Federal Republic of Nigeria," the communiqué concluded.

Former Bauchi State Governor Isa Yuguda asserted on Tuesday that President Bola Tinubu should not be held accountable for the current economic hardship and high inflation in Nigeria.

Speaking at the inaugural Asiwaju Scorecard Series organized by the All Progressives Congress Professionals Forum in Abuja, Yuguda emphasized that the economy was already in serious trouble before Tinubu took office.

In recent months, Nigerians have faced rising costs of food and inflation despite improvements in the exchange rate of the naira against the dollar. However, Yuguda argued that the Tinubu administration is not solely responsible for these economic challenges.

Yuguda highlighted that Tinubu inherited significant burdens, including a subsidy scam, widespread corruption in the civil service, and the economic impact of the Covid-19 lockdown, which saw billions of naira paid to subsidize domestic fuel consumption at historically low levels.

"The President did not create any of the problems people are talking about, whether in the economy or other sectors," Yuguda said. "What he met on the ground would have created a worse situation if not properly handled, but he is championing necessary reforms for a better society."

Yuguda pointed out that upon taking office, Tinubu announced the removal of the fuel subsidy, clarifying that it was not included in the latter part of the 2023 budget. Despite this, the administration has faced criticism over the subsidy removal.

Yuguda also reiterated his longstanding opposition to the fuel subsidy, which he documented during the Goodluck Jonathan administration when he chaired a subcommittee on the economic meltdown and recommended its removal due to widespread fraud.

He noted that a recent study showed Nigeria paid billions for fuel subsidies during the 2020 Covid-19 lockdown despite low domestic consumption.

"The President has been proved right with petrol importation dropping by 50 percent since June 2023," Yuguda added, highlighting the anticipated local production from the Dangote refinery and the upcoming resumption of production at the Port Harcourt and Warri refineries.

At least 40 people were killed and many others wounded in an attack by gunmen on Zurak village in Nigeria's north-central Plateau state, where clashes between herders and farmers are rife, the police and residents said on Tuesday.

Plateau police spokesperson Alfred Alabo said armed men, often referred to locally as bandits, fleeing an "aggressive onslaught" by security agents in Bangalala forest of Wase local government area of the state attacked Zurak and Dakai villages late on Monday.

While seven of the assailants were neutralised by security agents, fleeing gang members killed nine people and burnt down six houses, Alabo said in a statement.

Residents say the death toll is much higher. They told Reuters that dozens of gunmen had stormed the village on motorcycles, shooting indiscriminately, abducting an unspecified number of people, and setting houses ablaze.

"As they entered our village, they began shooting sporadically at anyone they saw. They killed more than 40 people without any mercy. I managed to escape to a nearby village. Until now, I haven't seen many of my family members," said Babangida Aliyu, a resident of Zurak who fled.

Another resident, Timothy Haruna, told Reuters: "They killed many people and abducted a lot. Many others sustained gunshot injuries. They also set our houses ablaze."

Attacks in rural areas and kidnapping for ransom have become commonplace in northern Nigeria in recent years where armed gangs have targeted villages, schools and travellers, demanding millions of naira in ransom.

Nigeria is plagued with security challenges, including a 14-year-long Islamist insurgency in its northeast, separatist violence in the southeast, and frequent deadly clashes between farmers and herders in the central region.

Alabo said the Plateau police command has deployed more officers to the area to secure the villages.

Reuters

Israeli forces raze parts of Gaza's Jabalia, hit Rafah with airstrikes

Israeli forces thrust deeper into Jabalia in northern Gaza on Tuesday, striking a hospital and destroying residential areas with tank and air bombardments, residents said, while Israeli airstrikes killed at least five people in Rafah in the south.

Simultaneous Israeli assaults on the northern and southern edges of the Gaza Strip this month have caused a new exodus of hundreds of thousands of people fleeing their homes, and sharply restricted the flow of aid, raising the risk of famine.

In Jabalia, a sprawling refugee camp built for displaced civilians 75 years ago, the Israeli army used bulldozers to clear shops and property near the local market, residents said, in a military operation that began almost two weeks ago.

Israel said it has returned to the camp, where it had claimed to have dismantled Hamas months ago, to prevent the militant group that controls Gaza from regrouping.

In a roundup of its activity over the past day, the Israeli military said it had dismantled "about 70 terror targets" throughout the Gaza Strip, including military compounds, weapon storage sites, missile launchers and observation posts.

Palestinian medics said Israeli missiles struck the emergency department of Jabalia's Kamal Adwan Hospital, prompting panicked staff to rush patients on hospital beds and stretchers to the rubble-strewn street outside.

"The first missile when it hit, it hit the entrance of the emergency department. We tried to enter, and then a second missile hit, and the third hit the building nearby," said Hussam Abu Safia, the head of hospital.

"We cannot go back inside to them ... The emergency department provides a service for children, the elderly and people inside the departments of the hospital."

Residents and medics said Israeli tanks were besieging another Jabalia hospital, Al-Awda Hospital, for the third day. In Geneva, WHO Director-General Tedros Adhanom Ghebreyesus said northern Gaza's sick and wounded were running out of options.

"These are the only two functional hospitals remaining in northern Gaza," Tedros said. "Ensuring their ability to deliver health services is imperative."

More than 35,000 Palestinians have been killed in the war in Gaza, which is now in its eighth month, according to the Gaza health ministry. At least 10,000 others are missing and believed to be trapped under destroyed buildings, it says.

Israel is seeking to eradicate Hamas after militants from the group stormed into southern Israel on Oct. 7, killing 1,200 and taking more than 250 hostages, by Israeli tallies.

The war has devastated the overcrowded coastal enclave, destroying houses, schools and hospitals and creating a dire humanitarian crisis.

Aid from a U.S.-built pier resumed moving into warehouses in Gaza on Tuesday using alternative routes, the Pentagon said. The distribution was halted for three days after crowds of needy residents intercepted trucks.

AIRSTRIKES

In the south, airstrikes killed three children in a house in Khan Younis and at least five people including three children in a home in Rafah, health officials said.

East of Khan Younis, residents said they were fleeing Khuzaa town after Israeli troops began an incursion on the eastern edge of the territory, bulldozing across the border fence.

"Bombing everywhere, people are leaving in panic. It was a surprising incursion," one resident from Khuzaa told Reuters by phone as he and his family were leaving.

Israel is pushing on with its operations in Rafah on Gaza's southern border with Egypt, where more than half of the territory's 2.3 million population had sought refuge after being displaced from areas further north.

UNRWA, the main United Nations agency in Gaza, estimated as of Monday that more 800,000 had fled since Israel began targeting the city in early May, despite international pleas for restraint over concern about civilian casualties.

On Tuesday, the agency said food distributions had been suspended in Rafah due to lack of supplies and insecurity.

Israel has pledged to continue with the Rafah assault to root out what it says are four remaining battalions of Hamas fighters holed up there. Tanks made incursions into the eastern Rafah suburbs of Jeneina, Al-Salam, and Brazil, according to residents.

The Israeli military said over the past day it had "identified a terrorist shooting mortar shells at IDF (Israeli Defence Forces) troops," though no injuries were reported. It said it had taken out the enemy with an airstrike and had located rockets and additional military equipment in the area.

Reuters

WESTERN PERSPECTIVE

Ukrainian gunners finally get shells to stop Russians near Kharkiv

Ukrainian servicemen operating a howitzer in Kharkiv region near the Russian border work around the clock to stop an incursion by Moscow's troops, and they are finally getting the shells to do it.

Ukraine's defenders were hamstrung for months by shortages of artillery shells and other weapons as U.S. Congress held up billions of dollars worth of military aid. As the lawmakers in Washington argued, Russia's forces pressed their advantage on the frontlines, pushing forward on the eastern front.

With a $61 billion aid package belatedly approved by Congress last month, Ukraine's gunners say the crippling shortages are starting to ease.

Those in the northern districts of Kharkiv region say the fighting is more intense than their previous assignment in Bakhmut, the town in eastern Ukraine seized by Russia last year and reduced to rubble by months of fighting.

"It's 24/7, their infantry keeps coming, we keep fighting their attacks. At least we are trying to. Whenever possible, we take them down," said Pavlo, a gunner of Ukraine's 92nd Separate Assault brigade operating a howitzer.

"We were positioned in the Bakhmut area before, now we have been transferred here. It's much 'hotter' here. We didn't have shells there. Here, at least we have shells, they started delivering them. We have something to work with, to fight."

Russian forces pushed across the border earlier this month and say they have captured about a dozen villages.

The town of Vovchansk, 5 km (three miles) inside the border, remains the focal point of the incursion. Ukrainian forces control about 60 % of the town and are fighting house-to-house to fend off Russian attacks.

The stakes are high - capturing Vovchansk would be Russia's most significant gain since launching the assault. Kharkiv, Ukraine's second largest city, lies 70 km away.

"We see them walking down the road, 5 km away all the way from Shebekino," said Vitalii, commander of the brigade's artillery unit, referring to a town on the Russian side of the border.

"We see them walking on foot to their positions. As they move, we of course try to hit them , to inflict maximum casualties."

Officers pore over drone footage of Vovchansk, with smoke rising over different districts, to assess the situation below. Monitors are checked, calculations made.

Two men are tasked with ensuring the howitzer is well camouflaged - with tree boughs.

Vitalii is confident that the shells will keep coming as everyone is aware of the importance of holding their line.

"Yes, we will be getting ammunition because we are up against a large and serious enemy group," he said.

"If we can demonstrate now that we are able in such an extreme situation to stop the enemy's big scale assault on Kharkiv and Kharkiv region, the enemy will not dare to think of attacking Kyiv, Chernihiv, Sumy or Poltava region."

** Russia starts exercise to simulate launch of tactical nuclear weapons

Drills ordered by Putin begin in southern Russia

Simulation will be closely watched in the West

Putin seen warning against deeper Western role in Ukraine

Russian forces have started the first stage of exercises ordered by President Vladimir Putin to simulate preparation for the launch of tactical nuclear weapons, the Defence Ministry said on Tuesday.

Moscow has linked the exercises to what it calls "militant statements" by Western officials, including French President Emmanuel Macron, which it said created security threats for Russia.

Nuclear analysts say the exercises are designed as a warning signal by Putin to deter the West from wading more deeply into the war in Ukraine. Western countries have provided weapons and intelligence to Kyiv but have refrained from sending troops.

The Defence Ministry said the first stage of the exercise involved Iskander and Kinzhal missiles.

It is aimed at ensuring that units and equipment are ready for "the combat use of non-strategic nuclear weapons to respond and unconditionally ensure the territorial integrity and sovereignty of the Russian state in response to provocative statements and threats of individual Western officials against the Russian Federation", the ministry said.

The drills involve missile forces in Russia's Southern Military District, which lies adjacent to Ukraine and also includes parts of Ukraine that Russia now controls.

Belarus, where Russia said last year it was deploying tactical nuclear weapons, will also be involved, the two countries have said.

Tactical, or non-strategic, nuclear weapons are less powerful than the strategic arms designed to wipe out whole enemy cities, but they nevertheless have vast destructive potential.

Some Western analysts believe non-strategic nuclear weapons have acquired greater importance in Moscow's thinking since the start of the war in Ukraine, where its conventional forces struggled in the first two years.

In theory the use of such a weapon could deliver a stunning shock to the West without necessarily triggering a full-blown nuclear war, though the risk of triggering a cycle of escalation would be huge.

'SPECIAL AMMUNITION'

Russia has about 1,558 non-strategic nuclear warheads, according to the Federation of American Scientists, although there is uncertainty about exact figures. They are controlled by the Russian Defence Ministry's 12th Main Directorate, known as 12th GUMO.

The ministry said troops were practising obtaining "special ammunition" - meaning nuclear warheads - for Iskander missiles, equipping launch vehicles with them and "covertly advancing to the designated position in preparation for missile launches".

It said aviation units were also practising the fitting of special warheads to Kinzhal hypersonic missiles, and flying into designated patrol areas.

Video released by the ministry showed missiles being transported in a convoy of military vehicles and placed in position ready for firing.

"The exercises are, obviously, a signal in response to discussion of NATO countries' troops in Ukraine. The most important features are advance announcement and visibility," Nikolai Sokov, a former Soviet and Russian arms control official, told Reuters.

Western militaries will be watching the exercises closely and seeking to draw conclusions about how much warning time they would have if Russia deployed such weapons for real, he said.

"The involvement of 12th GUMO can produce insights into how much time the release of warheads takes, how well detectable, how much warning," said Sokov, a senior fellow at the Vienna Center for Disarmament and Non-Proliferation.

The involvement of Kinzhal, he said, was "a new element I did not expect to see", although there was no doubt about its capability to carry both nuclear and conventional warheads.

When Putin ordered the drills this month, Russia's Foreign Ministry linked them to comments by France's Macron, who floated the possibility of sending European troops to fight Moscow in Ukraine, and British Foreign Secretary David Cameron, who said Kyiv had the right to use weapons provided by London to strike targets inside Russia. It also cited the provision of long-range British, French and U.S. ATACMS missiles to Kyiv.

The Foreign Ministry said on May 6 the exercises should send a "sobering signal" to the West and its "puppets" in Ukraine.

"We hope these drills will cool the hot heads in Western capitals," it said, adding the West should realise "the potential catastrophic consequences of the strategic risks they are generating" and stop short of direct military confrontation with Russia.

RUSSIAN PERSPECTIVE

Russia’s strikes hammer Ukrainian troops, equipment in 95 areas over past day

Russian forces struck Ukrainian manpower and military hardware in 95 areas over the past day in the special military operation in Ukraine, Russia’s Defense Ministry reported on Tuesday.

"Operational/tactical aircraft, unmanned aerial vehicles, missile troops and artillery of the Russian groups of forces struck amassed manpower and military equipment of the Ukrainian army in 95 areas," the ministry said in a statement.

Russian troops repel three Ukrainian counterattacks in Kharkov area over past day

Russian troops kept advancing deep into the enemy’s defenses and repelled three Ukrainian army counterattacks in the Kharkov area over the past day, the ministry reported.

"Battlegroup North units continued advancing deep into the enemy defenses. They inflicted damage on manpower and equipment of the Ukrainian army’s 125th mechanized, 112th and 113th territorial defense brigades in areas near the settlements of Konstantinovka, Okhrimovka and Granov in the Kharkov Region. They repelled three counterattacks by enemy assault groups near the settlements of Volchansk and Staritsa in the Kharkov Region," the ministry said.

The Ukrainian army’s losses in the Kharkov direction over the past 24 hours amounted to 245 personnel, two tanks, two armored combat vehicles, two pickup trucks, three 152mm 2S3 Akatsiya self-propelled artillery systems, a 152mm D-20 howitzer and a US-manufactured AN/TPQ-50 counterbattery radar station, it specified.

Kiev loses 425 troops, tank in Kupyansk area over past day

The Ukrainian army lost roughly 425 troops, a tank and two armored personnel carriers in battles with Russian forces in the Kupyansk area over the past day, the ministry reported.

"Battlegroup West units took more advantageous positions and inflicted casualties on formations of the Ukrainian army’s 14th, 21st and 66th mechanized brigades in areas near the settlements of Novosadovoye and Ivanovka in the Donetsk People’s Republic and Nevskoye in the Lugansk People’s Republic. Over the past 24 hours, they repelled six counterattacks by assault groups of the Ukrainian army near the settlements of Stelmakhovka and Chervonaya Dibrova in the Lugansk People’s Republic and Grigorovka in the Donetsk People’s Republic," the ministry said.

The Ukrainian army’s losses in the Kupyansk direction over the past 24 hours amounted to 425 personnel, a tank, two armored personnel carriers, six motor vehicles, a 122mm D-30 howitzer and a 122mm 2S1 Gvozdika motorized artillery system, it specified.

Russian troops also destroyed two US-made AN/TPQ-37 counterbattery radar stations of the Ukrainian army, it said.

Kiev loses over 320 troops, ammo depot in Donetsk area over day

The Ukrainian army lost more than 320 troops and an ammunition depot in battles with Russian forces in the Donetsk area over the past day, the ministry reported.

"Southern Battlegroup units improved their forward edge positions and inflicted casualties on manpower and equipment of the Ukrainian army’s 57th mechanized, 105th and 118th territorial defense brigades in areas near the settlements of Konstantinovka, Razdolovka and Chasov Yar in the Donetsk People’s Republic. The enemy lost more than 320 personnel, a tank, two infantry fighting vehicles and two US-made 155mm M777 howitzers. An ammunition depot of the Ukrainian army was destroyed," the ministry said.

Russian forces repulse seven Ukrainian counterattacks in Avdeyevka area over past day

Russian forces repulsed seven Ukrainian army counterattacks in the Avdeyevka area over the past day, the ministry reported.

"Battlegroup Center units improved their tactical position and inflicted damage on formations of the Ukrainian army’s 68th jaeger and 24th mechanized brigades in areas near the settlements of Semyonovka and Novgorodskoye in the Donetsk People’s Republic. They repulsed seven counterattacks by assault groups of the Ukrainian army’s 71st jaeger, 47th and 110th mechanized brigades near the settlements of Ocheretino, Solovyovo and Umanskoye in the Donetsk People’s Republic," the ministry said.

The Ukrainian army’s losses in the Avdeyevka direction over the past 24 hours amounted to 420 personnel, five armored combat vehicles, among them four US-made Bradley infantry fighting vehicles, six motor vehicles, a 152mm Msta-B howitzer, a 122mm Gvozdika motorized artillery system and a 122mm D-30 howitzer, it specified.

Russian troops strike three Ukrainian army brigades in Kherson area over past day

Russian troops inflicted casualties on three Ukrainian army brigades in the Kherson area over the past day, the ministry reported.

"Battlegroup Dnepr units inflicted damage on manpower and equipment of the Ukrainian army’s 37th marine infantry, 65th mechanized and 15th National Guard brigades in areas near the settlements of Vesyoloye in the Kherson Region, Rabotino and Malaya Tokmachka in the Zaporozhye Region," the ministry said.

The Ukrainian army’s losses in the Kherson direction over the past 24 hours amounted to 105 personnel, seven motor vehicles, two US-made 155mm M777 howitzers, a 152mm 2A36 Giatsint-B howitzer and a 122mm BM-21 Grad multiple rocket launcher, it specified.

Russian air defenses down 45 Ukrainian UAVs, two ATACMS missiles over past day

Russian air defense forces shot down 45 Ukrainian UAVs (unmanned aerial vehicles), two ATACMS, eight SCALP-EG and four HARM missiles over the past day, the ministry reported.

"During the last 24-hour period, air defense capabilities shot down 45 unmanned aerial vehicles, two US-made ATACMS tactical missiles, eight French-made SCALP-EG cruise missiles, five French-made Hammer guided aerial bombs, four US-manufactured HARM anti-radar missiles and eight US-made HIMARS rockets and Olkha rockets," the ministry said.

In all, the Russian Armed Forces have destroyed 601 Ukrainian warplanes, 274 helicopters, 24,464 unmanned aerial vehicles, 523 surface-to-air missile systems, 16,114 tanks and other armored combat vehicles, 1,306 multiple rocket launchers, 9,717 field artillery guns and mortars and 21,872 special military motor vehicles since the start of the special military operation, the ministry reported.

Reuters/Tass